No Hawai`i appellate court has ever interpreted the meaning of the CGL policy's pollution exclusion. The Ninth Circuit recently issued an Order certifying a question to the the Hawai`i Supreme Court regarding its interpretation of the pollution exclusion. See Apana v. TIG Ins. Co., No. 08-15369 (9th Cir. July 15, 2009) [here
Hawaii Insurance Lawyers Meet Insurance Commissioner
By Tred R. Eyerly on
The Insurance Coverage Group of the Hawai`i State Bar Association recently met with Hawai`i Insurance Commissioner, J. P. Schmidt. The Commissioner gave his insight on the state of the Insurance industry on both the mainland and in Hawai`i.
At the national level, the Commissioner reported there are several bills before Congress to federalize the insurance…
No Coverage for Damage to Cotton in Insured’s Care, Custody and Control
By Tred R. Eyerly on
Acknowledging that the insured's cotton was damaged by an occurrence, the Eighth Circuit nonetheless affirmed the district court's denial of coverage based upon an exclusion. See Michigan Millers Mut. Ins. Co. v. DG&D Co., Inc., No. 08-2699, 2009 U.S. App. LEXIS 14236 (8th Cir. July 1, 2009).
The insured operated a cotton gin. After delivering 50,000…
Merger Activities Not Covered Under Real Estate Professional Services
By Tred R. Eyerly on
The scope of coverage for "real estate professional services" was at stake in St. Paul Fire and Marine Ins. Co. v. ERA Oxford Realty Co. Greystone, LLC., No. 07-00921-CV (11th Cir. June 23, 2009) [here].
The underlying suit alleged ERA employees approached two real estate brokers to discuss a merger. A verbal agreement was reached…
Additional Insured Entitled to Full Coverage
By Tred R. Eyerly on
The New York Court of Appeals considered whether a Landlord was an additional insured under a policy obtained by the Tenant. See Kassis v. The Ohio Casualty Ins. Co., No. 117 (N.Y. Ct. App. June 25, 2009).
The Landlord leased property to the insured, who, pursuant to the lease, obtained a commercial general liability insurance…
Coverage Found Under Unusual Flood Exclusion, Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Two issues were presented in Stewart Enterprises, Inc. v. RSUI Indem. Co., Inc., 2009 U.S. Dist. LEXIS 50156 (E.D. La. June 15 2009). First, was the excess carrier's following form policy was bound by the primary carrier's exception to the flood exclusion? Second, was the primary policy's anti-concurrent causation clause applicable?
The insured owed various cemeteries, funeral…
Bad Faith Claims Based on Insurer’s Lack of Concern Denied
By Tred R. Eyerly on
Bad faith and coverage for looting were at issue in Spears v. State Farm Ins. Co., No. 08-3183, 2009 U.S. Dist. LEXIS 49554 (E. D. La. June 12, 2009). The insureds' home was damaged by Hurricane Katrina on August 29, 2005. A homeowner's policy issued by State Farm provided coverage of up to $179,700 for dwelling and up…
Eleventh Circuit Certifies Question on Effect of Cancellation Notice
By Tred R. Eyerly on
The insured held a commercial auto policy issued on June 5, 2006 by Infinity General Insurance Company. See Infinity Gen. Ins. Co. v. Reynolds, No. 08-14785 (11th Cir. June 8, 2009) [here]. The premium was overdue as of July 5, 2006, and a cancellation notice was sent July 10, 2006. The notice indicated that…
Faulty Data Base Increases Out-of-Pocket Medical Expenses
By Tred R. Eyerly on
If you have ever sought out of network health care, here is a story to make your blood boil.
Today's New York Times reports that Congressional investigators have discovered a faulty database overcharged patients for seeing doctors outside their insurance plan network. The database was operated by Ingenix, a subsidiary of UnitedHealth Group. The Congressional…
Supreme Court Bars Further Asbestos Claims Against Insurer
By Tred R. Eyerly on
In the term's insurance-related case, the United States Supreme Court held that additional suits were barred against an insurer that participated in a 1986 settlement of asbestos claims and contributed to a trust fund. See Travelers Indemn. Co. v. Bailey, No. 08-295 (U.S. June 18, 2009) [here]. We previously reviewed the Travelers case…